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Gold in freefall as confidence evaporates

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The gold price has fallen for a fifth straight day to its lowest in 34 months and is set for the worst quarterly slump in at least 90 years amid speculation the US Federal Reserve will reduce stimulus. Silver is headed for its biggest quarterly loss since 1980. Spot bullion slid as much as 1.7 per cent to $US1180.50 an ounce early on Friday, its lowest since August 2010. Prices have dropped 25 per cent since the start of April, the biggest quarterly slide since at least 1920. The losses are already having an impact on local stocks. Goldminer Kingsgate Consolidated on Friday warned it would take a $US300 million ($324 million) write-off against its Challenger goldmine in South Australia as it...

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